Solana Price Prediction Amid Heavy Liquidation Risk

Solana price retained its position as the biggest gainer in the top 10 as the market turns bullish.

It even managed to surpass the previously highlighted resistance zone near the $145 price level. However, a new danger looms especially for leverage traders.

Solana price managed to rally over $153 at the time of observation, extending the bullish momentum that it carried a week ago.

The cryptocurrency pulled off an 8.96% gain during Tuesday’s trading session as the markets responded to President Trump’s decision to ease tariffs and pursue trade talks with China.

The revelation was seen as a positive move for the markets and it therefore ushered in a shift in sentiment.

SOL was already on a bullish leg since 7 April and this latest news only served as more fuel for the bulls.

The Cryptocurrency was up 60.21% from its lowest price point so far this month. However, this recovery also underscores the potential for more upside since it was not yet oversold.

It still had room for more upside before retesting the next major resistance level near $179. However, recent observations signal the potential for a heavy liquidation shakedown.

Options Volume Surge Underscores Liquidation Risks

Since SOL has been at the top of the list of most appealing altcoins, it was able to attract a lot of attention in the last 2 weeks.

This includes attracting more attention in the derivatives segment where appetite for leverage has been rising.

Solana options volume surged by 715.69% to $4.28 million in the last 24 hours. This suggests that long positions rose significantly, outpacing the number of shorts.

This was confirmed by the observation that most top exchanges had a long/short ratio higher than 1.

The long/short ratio on Binance went as high as 1.64 on top trader Binance accounts and 1.21 on OKX. Further confirmation that long positions were growing rapidly.

If a large number of SOL options traders execute leveraged positions, then this could set the cryptocurrency up for a sizable liquidation event. Especially if there is a spike in sell pressure.

Solana Short Term Sells on the Rise?

Now that the market is back on a bullish leg, the expectations for more upside will likely continue to build-up as more investors FOMO in. This could set the pace for an unexpected short term sell pressure outcome.

On-chain data already signaled that sell pressure was already building up. Most SOL trading activity takes place on Binance which is the largest crypto exchange by volume.

Solana orderbook liquidity data revealed that Binance experienced a large spike in negative delta for SOL trading in the last 24 hours.

This was the highest spike that the cryptocurrency has achieved almost $120 million worth of sell orders in the last 24 hours.

Aggregate orderbook liquidity delta also demonstrated a similar observation, signaling that short term profit-taking was on the rise.

Although the possibility of a major liquidation event is growing, it is worth noting that SOL short liquidations in the last 24 hours were higher at $18.70 million compared to $4.81 million worth of long liquidations.

Solana Price Prediction

Now that the cryptocurrency has been rallying for the last 2 weeks, with momentum pushing higher this week, it is important to consider the next possible move.

More bullish momentum could push SOL price action to the $179-$181 price level which is the closest resistance zone on the upside.

Median term recovery could see price rally closer or above the $200 price level. Meanwhile, a retracement could see price drop to the $124-$111 price range.

Macro-economic factors recently proved to have a significant impact on the markets and the volatile nature of the situation means the markets could still not be out of the woods yet.

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